The Competition Policy of the European Union As part of the European Union, member states adopt an economic policy conducted in accordance with the principle of an open market economy with free competition. Demand seeks the best ratio between quality and price that consumers will purchase. Even in the most ideal economic conditions, economists accept that perfect competition cannot be achieved. This structure can be achieved by regulates business within the European Union, and thereby eliminating practices deemed as anti-competitive. This is blamed on European firms.